Vi to rollout 5G within 9 months of fundraise: CEO Akshaya Moondra
The company plans to spend over 70% of its over ₹45,000 crore fundraise via debt and equity into capex for 5G rollout and 4G network expansion, a person familiar with the matter said.
Addressing reporters on Monday, chief executive Akshaya Moondra said the ₹18,000-crore follow-on share sale will see the government stake diluted to 24%, which could rise to a comfortable 32-33% if the Centre decides to convert some of the principal dues into more equity.
«If you recollect the reforms package that was announced in September 2021, the government had provided for that, if the instalments arising out of the deferment of four years, which will start after September 2025...as per the reforms package that will be converted to equity by the government. We plan to pay the instalments out of our cashflows. However, there is government support available as part of the reform package,» Moondra said.
«If that conversion were to happen, they would probably not exceed the (shareholding) levels or stay in the ballpark that they have today. So, I don't think that's a cause of concern for us,» he said.
The government is the largest shareholder of Vi, holding around 32%. After equity dilution in the current round, its share will be reduced to 24%, which is a comfortable range for the government to further extend a reforms package in FY26 when the moratorium period of spectrum payments comes to an end, Moondra said.
According to Kotak Institutional Equities, following the expiration of the moratorium, Vi's obligations toward
